Organizational development involves improving organizational performance through organization-wide changes. There are different types of organizational structures such as traditional vs non-traditional, functional vs divisional, and centralized vs decentralized structures. Traditional structures have formally defined roles and resistance to change while non-traditional structures are flexible, adaptable, and have fewer employees. When organizations change, employees typically go through stages of denial, defense, discarding old ways, adaptation to new systems, and ultimately internalization of changes. Organizational culture comprises shared values and beliefs that establish workplace norms. Techniques for organizational change include management by objectives, survey feedback, and team building.

1. Organizational Development Prepared for UHS 2062 lectures at UTM Skudai, Johore, October 2009 srsiwok@gmail.com

2. Introduction Organizational development is the process of improving organizational performance by making organizational-wide changes.

3. Organizational structure Organizational structure refers to the arrangement of positions in an organization and the authority and responsibility relationships among them (as every organization is made up of persons holding particular positions or playing certain roles).

4. An example of a structure

5. Dimensions of organizational structure Traditional vs nontraditional organizational structure Functional vs divisional structure Centralized vs decentralized structure

6. Traditional vs Nontraditional Traditional organization structure(TOS) has formally defined roles for their members, very rule driven and stable & resistance to change. Jobs and lines of status /authority tend to be clearly defined in traditional structures (kept within organizational guidelines and standards).

7. Traditional vs Nontraditional Nontraditional organizational structures (NOS), are characterized by less formalized work roles and procedures. Flexible and adaptable, without rigid hierarchical characteristics. NOS generally have fewer employees than the TOS. NOS and TOS may occur in the same organization, but different departments.

8. Traditional vs Nontraditional NOS are often organized around a particular project or product line and are responsible for all aspects of the job. Examples of NOS: NASA Film crews Financial institutions etc

9. Characteristics of NOS High flexibility and adaptability Collaboration among workers Less emphasis on organizational status Group decision making

10. Change of command The chain of command is the number of authority levels in a particular organization. The chain of command follows the line of authority and status vertically through the organization.

11. Span of control The span of control is the number of worker who must report to a single supervisor. An organization with a wide span of control has many workers reporting to each supervisor. An organization with a narrow span of control has workers reporting to each supervisor.

12. Span of control Based on the dimension of span of control, an organization can be described as either “tall” or “flat”. A “tall” organizational structure has a long chain of command and a narrow span of control A “flat ” organizational structure has a short chain of command and a wide span of control.

13. Organizational Change First step towards organizational change is called the sacred cow hunt (Kriegel & Bradnt, 1996) : The paper cow The meeting cow The speed cow

14. Employees acceptance of change Carnall (1990, in Aamodt, 2007) suggests that employees typically go through five stages of organizational change: denial, defense, discarding, adaptation and internalization.

15. Stage 1: Denial Denies that any changes will take place Try to convince that old ways is working Find reasons why the proposed change will never work

16. Stage 2 : Defense When employees begin to believe that change will actually occur, they become defensive and try to justify their positions and ways of doing things.

17. Stage 3 : Discarding At some point employees began to realize that not only that the organization is going to change , but the employees are going to have to change as well . Change is inevitable; thus old ways have to be discarded and start accepting the change as the new reality.

18. Stage 4 : Adaptation Employees test the new system, learn how it functions, began to make adjustments in the way they perform. Tremendous energy is spent and employees can often become frustrated and angry.

19. Stage 5 : Internalization Employees become immersed in the new culture, become comfortable with the new system and accepted their new coworkers and the new work environment.

20. Important factors The extent to which the employees readily accept and handle the change is dependent on : The reason behind the change The person making the change The personality being changed

21. Organizational culture Also often referred to as corporate culture, or corporate climate. Organizational culture comprises of the shared values, beliefs and the traditions that exist among the individuals in the organization. It is the culture that establish the workplace norms of appropriate behaviors etc

22. Organizational Change Techniques Management by Objectives Survey Feedback Team building T-groups

23. Organizational Theories Distinguish the characteristics of org. The structure of org. The interrelationships of people in org. The interactions between various elements in an org. such as people and technology See Spector

24. What is culture? Culture is the comprehensive term that includes the various understandings, traditions and guidance which we all belong (Gestwicki, 2007) “Culture forms the prism which members of a group see the world and create shared meaning” ( Bowman and Burgess, 1993, in Gestwicki, 2007)

25. Changing culture Assessing the new culture: Needs assessment Determining executive direction Implementing consideration Training Evaluation of the new culture

26. Other steps… Creating dissatisfaction with the existing culture Maintaining the new culture Selection of employees

27. Empowerment

28. What does empowerment mean? More accurate to describe empowerment as a process as an end state ( Gargiulo and Kilgo, 2005)

29. Making decisions to empower Factors in making decision to empower: Importance of decision quality Leader knowledge of the problem area Structure of the problem Importance of decision acceptance Probability of decision acceptance Subordinate trust and motivation Probability of subordinate conflict

30. The Different Meanings of Empowerment When employer empowers employees, what they mean is giving more say in the day-to-day activities. Empowerment may mean differently to employer and to employees.

31. Levels of employee input Following Ownership of own product Advisory Shared /participative /team absolute

32. Consequences of empowerment Personal Financial Career

33. References Aamodt, M.G (2007). Industrial /organizational psychology. An applied approach. Belmont, CA: Thomson Riggio, R. E. (1996). Introduction to Industrial/ Organizational Psychology (2nd. Ed). New York: Harper Collins Gargiulo, R & Kilgo, J ( 2005). Young children with special needs ( 2nd ed.). New York: Thomson